Alan Zibel, Robin Sidel and Christina Rexrode broke the news that Bank of America Corp. was in discussions to pay more than $800 million to settle allegations with the Consumer Financial Protection Bureau over credit card add-on products. The CFTB claims the bank pushed customers into signing up for extra add-on products, such as identity-theft protection and debt cancellation products in the event of a job loss, according to sources. The settlement could be announced in the coming days and would be the CFPB’s largest ever with a financial institution.

The story as it appeared on Dow Jones:
April 3, 2014, 3:59 PM EDT – Bank of America In Settlement Talks Over Credit Card Practices — Sources

WASHINGTON — Bank of America Corp. is in discussions to pay more than $800 million to settle allegations by the Consumer Financial Protection Bureau that the bank pushed customers into signing up for extra credit-card products, according to people familiar with the matter.

The settlement, which could be announced in the coming days, would be the CFPB’s largest ever with a financial institution. It would mark the agency’s fifth settlement with a credit-card provider over so-called add on products, such as identity-theft protection and debt cancellation products in the event of a job loss. A significant chunk of the money is expected to go back to customers.

A CFPB spokesman declined to comment. A Bank of America spokesman also declined to comment.

The CFPB, along with other regulators, has been cracking down on credit-card companies it believes misled consumers about the value of such add-on products. Last year, the CFPB reached settlements with American Express Co. and J.P. Morgan Chase & Co. over similar allegations. The agency in 2012 reached credit-card settlements with Capital One Financial Corp. and Discover Financial Services.

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